Life and Health Insurance Agent or Agency: business launch guide

What this business takes

A licensed life and health insurance agent helps individuals, families and small employers buy life insurance, health coverage (ACA Marketplace and off-exchange), Medicare Advantage, Part D and Medicare Supplement plans, supplemental health and annuities, and is paid commissions by the insurance companies that appoint them. Getting licensed is fast and cheap in most states, but building a book of business is slow: income is commission-only at first, Medicare and ACA selling carry strict federal marketing and training rules, and most new agents quit before renewals add up.

The work behind the launch

1. Choose your lines and business structure

   Decide what you will sell first. Life and Accident & Health (called Life and Disability or Life and Health in some states) are two separate lines, each with its own exam; most founders take both so they can sell term life, ACA health and Medicare. Decide whether you will work under an existing agency, contract with a field marketing organization (FMO/IMO), or open your own agency entity. If you form an LLC or corporation to receive commissions, most states require a business entity (agency) license with a designated responsible licensed producer, and some, like Texas, also require a bond or E&O policy for the agency. Rhode Island treats entity licensing as voluntary for life and health, so check your state row before paying for one.

2. Complete pre-licensing and pass the state exams

   Open your state's row and confirm whether pre-licensing education is required. It varies widely: Oregon requires 20 hours per line, while Utah, South Dakota, Rhode Island and Washington (since July 23, 2023) require none. Register with your state's exam vendor (Pearson VUE, PSI or Prometric) for the Life exam and the Accident & Health exam separately. Bring the exact ID and any course completion certificate the vendor requires; West Virginia, for example, requires a physical course certificate that expires six months after completion. Study the state's content outline, not just national material, because each exam includes state law questions. Note the date you pass, because exam results expire (South Carolina: 12 months).

3. Fingerprints, background check and license application

   Most states require a fingerprint-based background check before a new resident license is issued, but the timing differs: Tennessee wants prints at least two business days before you apply, Washington after you apply, and Wyoming mails you a packet after it receives your application. Use only the vendor and service code your state names (IdentoGO, Fieldprint, Prometric live scan). Apply through NIPR or your state's portal, answer every background question truthfully and attach explanations for any criminal history or administrative actions. Pay only the fees printed by your state. Do not quote, advise or sell until your license is issued and shows active in the state lookup.

4. Get contracted and appointed with carriers
5. Medicare certification and CMS marketing rules
6. ACA Marketplace registration and consent
7. Set up a compliant, secure office
8. Build your first pipeline legally
9. Run the appointment and write the business
10. Renewals, continuing education and growth

Working documents to prepare

The pathway organizes these materials. Some tools adapt a shared master; the app identifies those so you can review and customize the scope before use.

• Insurance agent license and appointment tracker
• Insurance licensing exam and application checklist
• Carrier contracting and commission schedule log
• Medicare Scope of Appointment and certification record
• ACA Marketplace consent and enrollment log
• Client needs analysis worksheet
• Insurance sales and commission reconciliation tracker
• Lead source and Do Not Call compliance log
• Client data security and complaint checklist
• Local requirements call sheet

Inspect the Life and Health Insurance Agent or Agency pathway and its tools.

Your location changes the answer

The Academy offers 56 state and U.S. jurisdiction layers. Depth varies by pathway and location. Federal requirements, state licensing, local use, property approval, professional scope, and payer contracts are different checks.

Use the local requirements desk to identify the responsible authority. Record the service model, actual work address, capacity, workers, and customer type before asking for a ruling. When a record says to call the agency, keep that step open until you have an answer.

Funding is a separate decision. The capital finder links to programs to investigate; eligibility does not equal approval.

Official sources to start with

These links come from the pathway's source ledger. The dates below are the dates recorded there, not a claim that every requirement was reverified today. Open the current agency page before filing, paying, or committing to a property.

• Electronic Code of Federal Regulations: 42 CFR 422.2274, agent and broker requirementsLedger status: verified · Recorded check: 2026-09-24 · Federal operating layer
• CMS: CMS Marketplace agent/broker registration and training pageLedger status: verified · Recorded check: 2026-09-24 · Federal operating layer
• Federal Trade Commission: FTC Complying with the Telemarketing Sales Rule, calling timesLedger status: verified · Recorded check: 2026-09-24 · Federal operating layer
• Electronic Code of Federal Regulations: 31 CFR 1025.210, AML program requirements for insurance companiesLedger status: verified · Recorded check: 2026-09-24 · Federal operating layer
• Wisconsin Office of the Commissioner of Insurance (OCI): Resident Individual Intermediary (Agent) License - Life and Accident & Health or Sickness lines; Intermediary Firm license for corporations/partnershipsLedger status: verified · Recorded check: 2026-09-24 · Occupational license for this work

See how we handle evidence and corrections and the source review queue.

Before you commit

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